1. 1 Governance Council Meeting Fiscal Year 2004 LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY GATEWAY CITIES SERVICE SECTOR December 18, 2003

2. 2 Goals & Objectives  Create a safety conscious culture throughout the MTA and its customers and business partners  Improve transit systems  Attract, develop and retain employees  Create a positive image of the MTA  Deliver quality capital projects on time and within budget  Provide leadership for the region’s mobility agenda through responsive planning and resource allocation  Improve the efficiency and effectiveness of the agency

3. 3 Service Sector Goals and Objectives Goals  Managers and supervisors have been charged with the following tasks: –Managing their departments towards more efficient allocation and utilization of resources –Increasing communications with stakeholders and the community –Enhancing quality of service –Improving customer satisfaction

4. 4 FY04 Budget Assumptions Operating Assumptions  Begin revenue operation of the 22-mile Gold Line light rail system from downtown Union Station to Sierra Madre Villa in Pasadena on July1, 2003.  Increase Metro Bus service on the highest ridership lines through optimizing the system wide bus schedules and reducing service on low productivity lines.  Implement three new Rapid Bus lines: Vernon/La Cienega, Soto, and Crenshaw/Rossmore.  Implement a fare restructuring program in January 2004 to provide an estimated $16.6 million in additional revenues in FY04.  Improve the bus and rail vehicle preventive maintenance programs through scheduled mid-life overhaul programs.  Improve safety of passengers and pedestrians by continuing the S-1 Gards retrofitting project.

5. 5 FY04 Budget Assumptions Capital Assumptions  Capital projects were funded in agency-wide priority order using criteria developed by Executive Management: safety, customer improvements, previously committed, and mandated.  Approved capital projects receive an annual appropriation, capital projects are controlled by the life-of-project budget that is approved by the Board.  Revenues in the capital program are a combination of grant and local matching funds.  Final design and engineering and beginning construction of the 14-mile San Fernando Valley Metro Rapidway and accompanying bikeway is the major transit construction related project in FY04 budget.

6. 6 SECTORIZATION... Budget Direction and Autonomy ISSUES TO BE RESOLVED:  Determining manpower allocations  Fleet composition and management  Restructuring of bus service  Direct charging of allocated costs from centralized functions  Systems for passenger counting –To validate subsidy for passenger to determine any formulas for funding  Consent decree service and costs

7. 7 Fiscal Year Risks  Risks –Fluctuation of fuel prices –Workers’ Compensation reduction of $6 million –Impact of labor negotiations –FY04 budgeted average labor rates in budget and overtime burn rates assumptions –Farebox assumptions and fare media mix

8. 8 Boardings – All Sectors

9. 9 Farebox Revenue – All Sectors FY04-Q1